The Nordstrom family struck a deal to take their namesake department store chain private. Here's how they built their retail empire.
Saul Loeb/Getty Images
- Nordstrom's founding family is taking the retail chain private with help from a Mexican retailer.
- Bruce Nordstrom, whose grandfather started the department store in 1901, died in May.
- Here's how Nordstrom grew from a single location in Seattle into a fashion empire.
The descendants of John W. Nordstrom are taking the eponymous department store chain private.
Nordstrom's great-grandsons Pete and Erik, who are now the company's President and CEO, respectively, are working with cousin Jamie Nordstrom, the company's chief merchandising officer, and Mexican retailer El Puerto de Liverpool to purchase the company at $24.25 per share, the group said on Monday. The deal gives Nordstrom an enterprise value of $6.25 billion and should be completed in the first half of 2025, the group said.
Earlier this year, Pete and Erik's father, Bruce, died at the age of 90 after a long career with the company.
The grandson of founder John W. Nordstrom, Bruce was instrumental in bringing the retailer to international prominence in a career that spanned four decades.
Here's how the Nordstroms built their empire from a single shoe store in Seattle to one of the biggest names in fashion retail.
Shutterstock
Two decades later, the partners opened a second store in Seattle's University District.
Shutterstock
Wallin retired soon after and sold his share of the company to the Nordstrom sons too. John's third son, Lloyd, later joined the team.
Business Insider/Jessica Tyler
Nordstrom purchased the Seattle-based clothing store Best's Apparel in 1963. Three years later, the company purchased a Portland, Oregon-based clothing store and began offering both shoes and apparel under the name Nordstrom Best. The company added men's and children's apparel in 1966.
Getty Images
Everett's son Bruce, Elmer's sons James and John, Lloyd's son-in-law Jack, and family friend Bob Bender became the new heads of the company. The third generation of Nordstrom chairmen took the company public in 1971, formally renaming it Nordstrom Inc.
Business Insider/Mary Hanbury
That same year, the company became the largest-volume fashion specialty store on the West Coast, with sales surpassing $100 million. The chain continued to expand throughout the next several decades.
John Wilcox/MediaNews Group/Boston Herald via Getty Images
The elder Nordstroms retired as co-chairmen, but remained on the Board of Directors, and Bruce's sons, Blake, Pete, and Erik, took over the company in 1995.
Vince Talotta/Toronto Star via Getty Images
Blake began working in the family business when he was about 11 years old. His first role with the company was in the stockroom, and he went on to hold many positions with the company, including merchandise buyer, regional manager, and then vice president in charge of stores in Washington and Alaska.
Getty Images
"It was always the best working for my brother because he had more confidence in me and gave me more autonomy than anybody I had ever worked for," Erik Nordstrom said in his father's 2007 book, "Leave It Better Than You Found It."
Getty Images
Bruce and his sons were credited with turning the company around after several years of underperformance by non-family leadership.
Business Insider/Jessica Tyler
In 2014, the company started expanding internationally. It opened stores in Canada and the US territory of Puerto Rico.
Business Insider/Mary Hanbury
The concept combined in-store services, such as tailoring, shoe shining, and food, with high-tech digital ordering and returns systems.
Vince Talotta/Toronto Star via Getty Images
"Blake was the best big brother, friend and mentor anyone could ever ask for," Pete and Erik Nordstrom said in a note to employees. "One of the things that brings us some comfort is that Blake's values, character and passion can still be reflected in what this company does β how we treat each other, our customers and our communities. Building on that is the best way we can think of to honor his legacy."
Frank Franklin II/AP
In regulatory filings, the brother said they had not yet received any financing commitments to complete such a deal.
Getty Images
Nordstrom died on May 18.
"Our dad leaves a powerful legacy as a legendary business leader, a generous community citizen and a loyal friend," Pete and Erik said in a statement.
Shannon Stapleton/Reuters
The deal with Mexican retailer El Puerto de Liverpool was developed over several months. Once completed, the Nordstrom descendants will own 50.1% of he department store chain, with the other 49.9% in the hands of Liverpool, Nordstrom said on Monday.
Jessica Tyler contributed to an earlier version of this story.
